Abstract [en]

Use/Aim: The purpose of this study is to explain how the K2-regulations affect small companies towards outsourcing and insourcing of the finance function and also how that effect the decision to hire an auditor or not.

Result: The simplifications in the K2-regulation may lead to that small companies choose to partially or entirely manage their own finance function rather than outsourcing it. Simplifications, cost reductions and information about the company have been confirmed to be the factors that affect small companies regarding the insourcing of the finance function. Furthermore, we have come to the conclusion that small companies still demand control of the accounts in the form of an audit in order for the owner of the company to get a verification to ensure that everything has been done properly.

Background: Sweden is moving towards a more rule-based accounting that entails some simplifications. The K2-regulations is mandatory for small companies who deselect the complex standard K3-regulations since January 1, 2014. K2 stands for a simple rule-based framework where all the rules and standards are contained in the same document. This means that knowledge to manage the finance function internally is found in higher extent in small companies. To continue the adjustment to Europe it is voluntary for small companies to hire an auditor or not since 2010.

Method: This study has a qualitative research approach. Data was collected through semi-structured interviews with both small companies and authorized accountants. Empirics have been compared with theory in an analysis that ends with a conclusion to fulfill the purpose of the study.